NP AND IRR ANALYSIS After discovering a new gold vein in central Ontario, RIC Mining Corporation must decide whether to mine the deposit. The most cost-effective method of mining gold is sulfuric acid extraction, a process that results in environmental damage. To go ahead with the extraction, RTC must spend $6.2 million for new mining equipment and pay $400,000 for its installation. The gold mined will net the firm an estimated $1.9 million each year over the 5-year life of the vein. RT's cost of capital is 10%. For the purposes of this problem, assume that the cash inflows occur at the end of the vear.

a. What are the NPV and IRR of this project?

b. Should this project be undertaken if environmental impacts are not a consideration?

c. How she ld environmental effects be considered when evaluating this, or any other, project? How might these effects change your decision in part b?

PLEASE show all the calculation and answer this ASAP!!!